Posco's joint venture in Indonesia posts first profit in 2017

SEOUL, Jan. 15 (Aju News) -- Posco said Monday that its joint venture in Indonesia turned a profit last year for the first time since it was established four years ago as the South Korean steelmaker's first integrated steel mill abroad.

PT Krakatau Posco posted an operating profit of 12 million US dollars last year, ending losses for three consecutive years. Posco owns 70 percent of the joint venture capable of producing three million tons of steel every year and the rest controlled by Indonesia's state-run PT Krakatau Steel. It was the first steel mill built by Posco abroad.

Posco said it would nurture the joint venture in Indonesia as the top steel company in Southeast Asia, reflecting its restored confidence that followed a painful three-year restructuring program that ended at the end of 2017.

Posco has sold non-core assets and reorganized its workforce and businesses to remain competitive amid a prolonged slowdown caused by oversupply and weak demand that have driven many steel makers to the corner.